SC Residential Real Estate Agreement is expected to transition to a strict Due Diligence contract on June 13, 2022.
South Carolina Association of REALTORS (SCR's) Form 310 Agreement/Contract: To Buy and Sell Real Estate (Residential) and Form 311 Agreement/Contract: To Buy and Sell Real Estate (Residential/Condo) are expected to be transitioning to a strict Due Diligence contract with regards to repairs effective June 13, 2022.
Changes are expected to be made to Paragraph 8 which is currently entitled “REPAIRS”. Currently there are 3 selectable repair options: (1) Repair Procedures, (2) Due Diligence and (3) As Is. Repair Procedures and As Is are expected to be removed – leaving only the Due Diligence clause. Due Diligence verbiage is not expected to be changed. Due Diligence Expiration Date and Termination Fee are the two primary Due Diligence fields required to agree upon and to be completed on this form.
In general, Due Diligence will give the Buyer an opportunity to be more comfortable in buying the property by taking the time to inspect and review aspects of the property to identify potential problems or unexpected liabilities in order to determine whether or not to proceed with the purchase.
Some Advantages for the Buyer
- Allows the Buyer to conduct any inspections they deem necessary and does not limit the Buyer in making additional requests to the Seller
- Avoids having to get subject matter experts to determine “operable”
Some Advantages for the Seller
- Opportunity for the Seller to obtain the agreed upon Termination Fee if not in agreement with the demands of the Buyer
- Can simplify the repair process and make it much cleaner
- Can allow for an easier path to put the house back on the market